This was evidenced by the CML’s first quarter possession figures not being as high as might otherwise have been expected.
The CML said it was important to recognise there was a cost to the lender for the additional work when managing mortgages that go into arrears and it was fair to charge for that work.
If lenders did not charge the borrowers in difficulty for these costs, they would be borne by all customers.
CML head of policy Jackie Bennett said: "The industry is fully engaged to help its customers through the Recession where they have a good prospect of being able to get back on track and sustain their home-ownership in the long term. Repossession remains a last resort.
"Lenders have worked hard to ensure that treating customers fairly is at the centre of their arrears management. This doesn’t necessarily mean that consumers won’t be charged, but it does mean that the charges will be a reasonable reflection of costs and that they will be applied in ways designed not to exacerbate the borrower’s financial problems."
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